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Coldwell Banker's Young on 2016 Home Listing Report (Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York, Bloomberg eleven Brio to Washington,
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  Speaker 1: dav and Bloomberg dot Com. This is taking stock from Saratoga,
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  Speaker 1: California to Detroit, Michigan. There's several We'll get a couple
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  Speaker 1: of thousand miles in between. There's also a very large
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  Speaker 1: price gap. The average cost of a homeward almost two
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  Speaker 1: and a half million dollars in Saratoga. That's because of
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  Speaker 1: Silicon Valley. Compare that with Detroit, Michigan sixty four thousand dollars.
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  Speaker 1: We're gonna be speaking to the new CEO of Coldwell
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  Speaker 1: Banker about their latest survey and housing market sentiment. I'm
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  Speaker 1: Kathleen Hayes and I'm Pim Fox. Let's go right now
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  Speaker 1: and we thank you. In the SMP five hundred index
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  Speaker 1: and Pim Fox on Bloomberg Radio. Hey man, I'll be
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  Speaker 1: too surprised to learn that the top ten most expensive
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  Speaker 1: markets are actually all in one state and one part
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  Speaker 1: of one stadium. Talking about cal Fornia Silicon Valley and
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  Speaker 1: actually looking at the latest survey of Cold World Banker
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  Speaker 1: real Estate It's home Listings report, and uh, look at
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  Speaker 1: again the most expensive, the most affordable markets were happy
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  Speaker 1: to welcome now to the show. Charlie Young. He's the
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  Speaker 1: relatively new president and CEO of Cold Cold Banker real Estate. Charlie,
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  Speaker 1: welcome to the show. Well, thanks to bringing I'm very
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  Speaker 1: happy to be here with you. Well, and you're at
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  Speaker 1: a company that you've worked at for some time, worked
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  Speaker 1: out and you've certainly been in real estate over the years,
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  Speaker 1: so this is I'm sure it's an achievement for you
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  Speaker 1: to to reach this head possession. What do you most
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  Speaker 1: want to do as CEO of Cold World Banker. Well,
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  Speaker 1: I'll tell you what the Coal Banker brand is is
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  Speaker 1: one of the great brands, not only in real estate,
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  Speaker 1: but in in American culture, where a hundred and ten
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  Speaker 1: years in running, we're going strong. And I think for me,
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  Speaker 1: my focus is on how do we point the brand
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  Speaker 1: forward in UH into the future. A lot of change
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  Speaker 1: happening in real estate markets, a lot of change happening
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  Speaker 1: with consumers as well, and want to make sure that
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  Speaker 1: we're best positioned to serve those consumers going forward. Charlie Young,
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  Speaker 1: what is the Home Listing Report? What does it tell
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  Speaker 1: us about homes in the United States? Well, I'll tell
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  Speaker 1: you why. First, let's let's start here. The Home Listing
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  Speaker 1: Report is a comparison. In fact, we believe it's the
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  Speaker 1: most comprehensive home price in comparison tool on the market.
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  Speaker 1: And what we do is we take a four bedroom,
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  Speaker 1: two baths home and we we compare that price markets
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  Speaker 1: across the United States. And so what it does is
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  Speaker 1: it gives consumers a great sense of what we would
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  Speaker 1: consider would be the average aspirational housing for the average
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  Speaker 1: American family today, and we can compare that market to market. Well,
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  Speaker 1: this goes to show your your challenge to me in
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  Speaker 1: California then, because the average aspirational American probably is not
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  Speaker 1: thinking of spending over a million dollars. But if you're
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  Speaker 1: anywhere along the coast of California, if you're around on
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  Speaker 1: Silicon Valley, uh in your top ten most expensive plas
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  Speaker 1: Gatos one point four seven million, Saratoga two point four five,
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  Speaker 1: I'm assuming you can sell, you know, as long as
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  Speaker 1: the as long as the Silicon Valley continues to be
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  Speaker 1: what it is and the money keeps flowing, you're fine.
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  Speaker 1: But when you look at the rest of California, is
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  Speaker 1: it is it a little bit more challenging because so
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  Speaker 1: many people have been priced out of the market. Well,
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  Speaker 1: I'll tell you what I think you're You're right on
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  Speaker 1: relative to our top ten. When you look at Sarahtoga
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  Speaker 1: California at two point five million dollars, that is a
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  Speaker 1: big price point. But understand this, it is right down
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  Speaker 1: the street from Apple, Google, UH and Facebook. It is
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  Speaker 1: the epicenter of Silicon Valley. And you've got all of
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  Speaker 1: the things that be to a really hot real estate market.
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  Speaker 1: You've got great jobs, high paying jobs. You have little
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  Speaker 1: room for new development so there's limited housing stock. You've
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  Speaker 1: got great lifestyle UH and and quality of life sting
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  Speaker 1: in California you can be outdoors twelve months and year.
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  Speaker 1: So all of those things point to a really rich marketplace.
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  Speaker 1: When you look at California as a whole, at average
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  Speaker 1: sales prices in the low five hundred thousands for the
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  Speaker 1: entire state of California, and then if you look at
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  Speaker 1: the entire homeless the report UH the average sale price
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  Speaker 1: for markets for U four bedroom, two bath home is
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  Speaker 1: three hundred and twenty thousand dollars. I think the thirteen
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  Speaker 1: hundred markets in the United States that you can live
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  Speaker 1: in for that price or less. So you know, America
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  Speaker 1: is still a very affordable country. And as it relates
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  Speaker 1: to housing now, I noticed that as far as the
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  Speaker 1: ten most affordable markets, So one of the things to
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  Speaker 1: note is that they are within commuting distance to major
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  Speaker 1: metropolitan regions. Tell us about where to go in Florida
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  Speaker 1: and Georgia if we want affordable housing. Well, if you
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  Speaker 1: look at that list of the top ten most affordable,
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  Speaker 1: number ten comes in and in a town called Plotka, Florida.
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  Speaker 1: It's within hour's drive of Jacksonville, Florida. Jackson's got a
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  Speaker 1: good economy that's got a strength and health care, in
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  Speaker 1: shipping and in military. And so if you are someone
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  Speaker 1: who's just getting started out and you don't mind a
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  Speaker 1: little bit of a commute, Pelca, it's a great a
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  Speaker 1: great spot to be. In Georgia, it's Augusta, Georgia, and
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  Speaker 1: I think when we think of Augusta, we think of
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  Speaker 1: the Master's Um, and there's a great quality of life,
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  Speaker 1: great culture in that city as well. But I think
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  Speaker 1: there's a theme here too. If you look at the
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  Speaker 1: most expensive markets and the most affordable markets, there is
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  Speaker 1: a common theme, and that is close access to jobs, culture,
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  Speaker 1: quality of life. It can be had at both ends
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  Speaker 1: of the spectrum. Well, I know, were Pennsylvania and scrant
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  Speaker 1: Pennsylvania really well, and I would submit to I don't
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  Speaker 1: think they're close to anything much bigger themselves, but they're
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  Speaker 1: growing and interesting. Uh communities. What is your biggest hope?
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  Speaker 1: Are you hoping that some new kind of transportationally built
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  Speaker 1: so that people can find homes in affordable areas but
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  Speaker 1: commute quickly, easily and cheaply to some of these larger metropolitans.
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  Speaker 1: Area is that in many cases are going to be
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  Speaker 1: an hour or two hours away. Now, I think really
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  Speaker 1: with it with a homeless report, we're trying to provide
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  Speaker 1: information that it's useful to consumers. So often when we
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  Speaker 1: look at pricing and housing in America, which becomes the
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  Speaker 1: focus on the ultra high end, we also look at
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  Speaker 1: media and the household cost of a house, which is
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  Speaker 1: stewed often by a marketplace because you're taking the average
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  Speaker 1: and not uh you know this this aspirational family home
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  Speaker 1: of four beds, uh two baths, and so I think
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  Speaker 1: like you can get you know, for instance, you can
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  Speaker 1: get the entire lists at Coldball Banker dot com backt
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  Speaker 1: uh slash um HLR and that the consumer is a
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  Speaker 1: good sense of where their market banks or where they
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  Speaker 1: might be thinking of of moving. Thank you very much.
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  Speaker 1: Charlie Young is the president and the chief executive of
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  Speaker 1: Cold World Banker real estate subsidiary of Religy. This is
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  Speaker 1: Bloomberg fiduciary advisor, fiduciary responsibility, fiduciary rules. Are they doing enough?
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  Speaker 1: Maybe not coming up? Elliott Wislooth of High Tower Advisors
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  Speaker 1: on Luberg Radio